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Physical Inventory: Adjusting the Book Inventory Balance in the Physical Inventory Document

Scope of Functions

As Release 4.6A, you can define how the system reacts when you post a goods movement for a material that is currently subject to an active physical inventory and for which the book inventory balance was frozen in the physical inventory document. The book inventory balance is frozen when you choose the Freeze book inventory balance indicator or enter the count results in the physical inventory document.

If inventory differences result from a book inventory balance that is no longer up-to-date when the differences are posted, you can normally initiate a recount. This means that you have to start a new physical inventory for the inventory document items that are to be recounted.

This procedure cannot always be used, for example, if:

Example of an incorrect book inventory balance in the physical inventory document:

Curr. date | Pstng date | Goods movements | Book inv.bal.| Qty entered
------------------------------------------------------------------------
07.01.99 | 07.01.99 | phys. inv. count| 1000 pcs | 80 pcs
| | | |
07.03.99 | 06.30.99 | goods issue | 100 pcs | 900 pcs

In this example, there is an inventory difference of 920 pieces. But the actual difference at the time of the count was only 20 pieces, for 900 pieces were issued on 06.30.99 but were not entered in the system until 07.03.99. To calculate the actual inventory difference, the goods issue that was subsequently entered would have had to reduce the book inventory balance in the physical inventory document by 900 pieces.

You can use the Adjust book inventory balance indicator to configure the system so that when it posts goods movements, it recognizes the postings that would have affected the book inventory balance in the physical inventory document.

When the indicator is not set (standard configuration), the system does not carry out any further checks regarding active physical inventory transactions.

When the indicator is set, the system checks whether the goods movement would have affected the book inventory balance if the goods movement had been posted earlier. If this is the case, the book inventory balance in the physical inventory document and the inventory difference are adjusted by the amount of the goods movement. During this process, the system asks for the date of the goods movement. The goods movement must have taken place at least one day before the physical inventory count.

To include goods movements that have an identical posting date and inventory count date, you can set the indicator in one of two ways:

Effects on Customizing

In Customizing for Inventory Management, you can activate adjustment of the book inventory balance by choosing Physical Inventory -> Physical Inventory Settings.

In this step, you can now also activate the creation of change documents, which was configured prior to Release 4.6A in the step Default Values for Physical Inventory.